FNB United Corp. Announces Second Quarter Earnings
FNB United Corp., the holding company for First National Bank and Trust Co., First Gaston Bank and Dover Mortgage Co., has announced its financial results for the second quarter of 2006.
Net income for the second quarter increased to $4.033 million, or 41 cents per diluted share, from $2.272 million, or 40 cents per diluted share, in the same period of 2005. The gains in net income and earnings per share were 78 percent and 2.5 percent, respectively.
For the first six months of 2006, net income was $6.71 million, or 83 cents per diluted share, compared to $4.578 million, or 80 cents per diluted share, in the same period last year, which represents increases of 47 percent in earnings and 3.8 percent in earnings per share.
As of June 30, total assets were $1,816,493,000, an increase of 101 percent from this time last year. Loans were $1,289,202,000, an increase of 83 percent, and deposits were $1,403,998,000, an increase of 104 percent. Compared to Dec. 31, 2005, total assets, loans and deposits increased 65 percent, 59 percent and 67 percent, respectively.
Return on average equity on an annualized basis for the first six months of 2006 was 9.49 percent, and return on average assets was 1 percent. For the second quarter, return on equity was 9.06 percent, and return on assets was 1.01 percent.
The second quarter of 2006 included earnings from recent acquisition activity. United Financial Inc. was acquired in November 2005, and its banking subsidiary, Alamance Bank (including its division, Hillsborough Bank) was merged with and into First National Bank and Trust Co. effective Feb. 1, 2006.
The merger of Integrity Financial Corp., and its banking subsidiary (First Gaston Bank and its divisions Catawba Valley Bank and Northwestern Bank) into FNB United Corp. was effective April 28.
The 2006 second quarter includes two months of operating results for First Gaston, these results being impacted by integration expenses incurred during that period. Additional integration expenses and charges will be incurred in connection with data systems integration planned for the third quarter of 2006, with synergies from the acquisition expected to begin being realized during the fourth quarter of 2006.
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